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Australian (ASX) Market Analysis & Valuation

UpdatedMay 31, 2026
DataAggregated Company Financials
Companies1571
  • 7D1.0%
  • 3M-5.2%
  • 1Y3.1%
  • YTD-1.1%

The Consumer Discretionary sector gained 4.3% while the market remained flat over the last week. Meanwhile, the market is actually up 3.1% over the past year. Looking forward, earnings are forecast to grow by 12% annually.

Trending IndustriesOil and GasGoldBiotechSoftwareRenewable Energy

Market Valuation and Performance

Has the Australian Market valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sun, 31 May 2026AU$2.9tAU$1.2tAU$113.3b17.3x25.9x2.4x
Tue, 28 Apr 2026AU$2.9tAU$1.2tAU$113.1b17.5x26x2.5x
Thu, 26 Mar 2026AU$2.9tAU$1.2tAU$112.4b17.4x25.5x2.4x
Sat, 21 Feb 2026AU$3.1tAU$1.2tAU$112.1b20.6x27.3x2.5x
Mon, 19 Jan 2026AU$3.0tAU$1.2tAU$109.8b22x27.7x2.5x
Wed, 17 Dec 2025AU$2.9tAU$1.2tAU$109.8b21.2x26.5x2.4x
Fri, 14 Nov 2025AU$3.0tAU$1.2tAU$109.9b21.3x26.9x2.5x
Sun, 12 Oct 2025AU$3.0tAU$1.2tAU$111.1b21.2x27.3x2.5x
Tue, 09 Sep 2025AU$3.0tAU$1.2tAU$111.2b20.6x26.9x2.5x
Thu, 07 Aug 2025AU$3.0tAU$1.2tAU$103.4b18.9x28.8x2.5x
Sat, 05 Jul 2025AU$2.9tAU$1.2tAU$102.3b18.4x28.2x2.4x
Mon, 02 Jun 2025AU$2.8tAU$1.2tAU$102.9b18.1x27.4x2.3x
Wed, 30 Apr 2025AU$2.7tAU$1.2tAU$104.1b17.3x25.8x2.2x
Fri, 28 Mar 2025AU$2.7tAU$1.2tAU$104.7b17.6x25.5x2.2x
Sun, 23 Feb 2025AU$2.8tAU$1.2tAU$99.3b18.9x27.9x2.3x
Tue, 21 Jan 2025AU$2.8tAU$1.2tAU$90.2b19.3x30.6x2.3x
Thu, 19 Dec 2024AU$2.7tAU$1.2tAU$89.5b20.3x30.7x2.3x
Sat, 16 Nov 2024AU$2.7tAU$1.2tAU$88.3b19.5x31x2.3x
Mon, 14 Oct 2024AU$2.7tAU$1.2tAU$87.5b19.5x31.1x2.4x
Wed, 11 Sep 2024AU$2.6tAU$1.2tAU$88.1b19.3x29.9x2.3x
Fri, 09 Aug 2024AU$2.5tAU$1.2tAU$91.9b18.7x27.5x2.2x
Sun, 07 Jul 2024AU$2.6tAU$1.2tAU$91.1b19.1x28.6x2.3x
Tue, 04 Jun 2024AU$2.6tAU$1.2tAU$92.2b19.5x28.1x2.2x
Thu, 02 May 2024AU$2.5tAU$1.2tAU$95.5b19.3x26.5x2.2x
Sat, 30 Mar 2024AU$2.6tAU$1.2tAU$95.4b20.1x27.6x2.2x
Mon, 26 Feb 2024AU$2.6tAU$1.2tAU$104.3b19.4x24.5x2.2x
Wed, 24 Jan 2024AU$2.5tAU$1.2tAU$115.6b18.8x21.8x2.1x
Fri, 22 Dec 2023AU$2.5tAU$1.2tAU$115.0b18.6x21.8x2.2x
Sun, 19 Nov 2023AU$2.4tAU$1.2tAU$116.7b18.1x20.2x2x
Tue, 17 Oct 2023AU$2.4tAU$1.2tAU$120.0b17.8x19.8x2x
Thu, 14 Sep 2023AU$2.4tAU$1.2tAU$120.4b18x20x2x
Sat, 12 Aug 2023AU$2.5tAU$1.2tAU$145.1b16.8x17x2.1x
Mon, 10 Jul 2023AU$2.4tAU$1.2tAU$145.3b16.1x16.3x2x
Wed, 07 Jun 2023AU$2.4tAU$1.2tAU$145.6b16.1x16.4x2.1x
Price to Earnings Ratio

16.4x


Total Market Cap: AU$2.4tTotal Earnings: AU$145.6bTotal Revenue: AU$1.2tTotal Market Cap vs Earnings and Revenue0%0%0%
Australian Market Price to Earnings3Y Average 25.8x202420252026
Current Market PE
  • Investors are relatively neutral on the Australian market at the moment, indicating that they expect earnings will grow in line with historical growth rates.
  • The market is trading close to its 3-year average PE ratio of 25.8x.
Past Earnings Growth
  • The earnings for Australian listed companies have declined 8.0% per year over the last three years.
  • Meanwhile revenues have been flat.
  • This means that either the cost of doing business or the level of investment back into businesses is increasing since sales have remained steady while profits have fallen.

Sector Trends

Which sectors have driven the changes within the Australian Market?

AU Market0.98%
Consumer Discretionary4.32%
Materials3.51%
Tech2.47%
Industrials2.28%
Real Estate2.25%
Consumer Staples0.72%
Healthcare0.17%
Financials-1.13%
Utilities-1.61%
Telecom-2.47%
Energy-2.86%
Sector PE
  • Investors favour the Tech sector the most for future growth which is trading above its 3-year average PE ratio.
    • The market's confidence is likely because analysts are expecting annual earnings growth of 19.4%, which is higher than its past year's earnings growth of 10.8% per year.
  • The Real Estate sector is the least preferred by investors for future growth, which is trading below its 3-year average of 170x.
Forecasted Growth
  • Analysts are most optimistic on the Healthcare sector, expecting annual earnings growth of 25% over the next 5 years.
  • This is better than its past earnings growth rate of 19% per year.
  • In contrast, the Financials sector is expected to see its earnings grow by 5.2% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuationSector
BHP BHP GroupAU$62.314.3%
+AU$13.0b		62.9%PE22.2xMaterials
WES WesfarmersAU$79.796.8%
+AU$5.8b		-3.9%PE29.6xConsumer Discretionary
GMG Goodman GroupAU$31.674.6%
+AU$2.8b		-3.8%PB2.7xReal Estate
FMG FortescueAU$22.313.8%
+AU$2.5b		45.0%PE13.2xMaterials
S32 South32AU$4.8110.6%
+AU$2.1b		57.7%PE39.3xMaterials
See more

Market Insights

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Earnings Season vs. AI

Latest News

S32
AU$4.81
South32
7D
10.6%
1Y
57.7%
GMG
AU$31.67
Goodman Group
7D
4.6%
1Y
-3.8%
QAN
AU$9.44
Qantas Airways
7D
8.8%
1Y
-11.0%
Narrative Update • May 28

QAN: Share Price Pullback And Outperform Upgrade Will Drive Future Rebound Potential

Analysts have slightly reduced their Qantas Airways price target to A$11.03 from A$11.05, reflecting updated assumptions on discount rate, revenue growth, profit margin and future P/E. Recent Street research cites valuation support for an upgrade to Outperform following the stock's pullback.
WBC
AU$36.00
Westpac Banking
7D
-1.5%
1Y
10.6%
CSL
AU$96.61
CSL
7D
-3.2%
1Y
-60.9%
Narrative Update • May 27

CSL: U.S. Capacity Expansion Will Support Long Term Earnings Power

Analysts have revised CSL's fair value estimate down from A$195.41 to A$146.21. This reflects updated views on slightly higher discount rates, more moderate revenue growth, softer profit margins and a lower assumed future P/E multiple.
ASX
AU$46.23
ASX
7D
-22.3%
1Y
-35.2%
FMG
AU$22.31
Fortescue
7D
3.8%
1Y
45.0%
JHX
AU$31.92
James Hardie Industries
7D
12.2%
1Y
-9.9%
Narrative Update • May 26

JHX: Conservative Outlook And Higher Margins Will Support Future Rerating Potential

Analysts have trimmed their fair value estimate for James Hardie Industries from A$45.25 to A$42.91, pointing to lower assumed revenue growth, a reduced future P/E of 23.37 and recent price target cuts such as Barclays moving to A$21, even though updated forecasts incorporate a higher profit margin and a slightly lower discount rate. Analyst Commentary Recent research points to a more cautious stance on James Hardie Industries as some analysts factor in a challenged end market and cut price targets, such as the move to A$21 from A$22.
TCL
AU$14.98
Transurban Group
7D
3.2%
1Y
5.6%
Narrative Update • May 26

TCL: Steady Traffic And Margins Will Support A Fairly Valued Outlook

Analysts have trimmed their price target for Transurban Group slightly to A$13.91 from A$13.94, reflecting modest adjustments to the discount rate, revenue growth outlook, profit margin assumptions and future P/E expectations. What's in the News Reported Average Daily Traffic (ADT) growth of 3.6% for March 2026, based on monthly traffic results.
BHP
AU$62.31
BHP Group
7D
4.3%
1Y
62.9%
NAB
AU$37.33
National Australia Bank
7D
-1.4%
1Y
-1.8%
STO
AU$7.81
Santos
7D
-5.2%
1Y
18.5%
WDS
AU$30.66
Woodside Energy Group
7D
-4.5%
1Y
37.8%
Narrative Update • May 12

WDS: Higher Required Returns Will Pressure Margins And Limit Future Upside

Analysts have raised their A$ fair value estimate for Woodside Energy Group from A$21.46 to A$24.37, citing revised assumptions for revenue trends, profit margins and future P/E expectations. Analyst Commentary While the updated A$24.37 fair value estimate reflects revised assumptions for Woodside Energy Group, some market voices remain cautious about how much upside is actually on the table at current levels.
QBE
AU$22.64
QBE Insurance Group
7D
-3.9%
1Y
-2.2%
WES
AU$79.79
Wesfarmers
7D
6.8%
1Y
-3.9%
TLS
AU$5.21
Telstra Group
7D
-3.2%
1Y
9.0%
Narrative Update • May 05

TLS: Future Returns Will Rely On Buybacks Dividends And Risk Repricing

Analysts have trimmed their Telstra Group price targets, citing slightly higher discount rate assumptions and cautious readthrough from recent software sector weakness. Fair value, long term revenue growth, margin and P/E inputs remain broadly unchanged.